Jobs cut at Graphic Packaging in LaPorte

LAPORTE - A LaPorte manufacturing company is shutting its doors, a move that will mean the loss of more than local 100 jobs.

Graphic Packaging International Inc. announced the decision on Wednesday.

The move is in response to the struggling economy and the need to reduce operating expenses for the company, which has other U.S. operations, David Scheible, president and chief executive officer for Graphic Packaging International, said.

“These very difficult decisions were studied significantly, but ultimately are necessary in light of the ongoing economic impacts being felt by our customers and consumers,’’ Scheible said.

According to company officials, about 130 workers will be affected by closing the LaPorte operation at 115 Koomler Drive on the city’s northeast side.

The business in LaPorte will be transferred to a number of the company’s existing operations in the U.S., predominantly those within a 150 mile radius in places like Kendallville, Ind., Chicago and Kalamazoo, Cindy Baerman, senior vice president of human resources at the company headquarters in Marietta, Ga., said.

The LaPorte plant will continue to operate and support customers while its business is transitioned to the other plants over the next few weeks, company officials said.

Baerman said the company regularly evaluates all of its business operations to maximize cost effectiveness.

The decision to close the plant in LaPorte was linked to factors like the expense of getting materials and product in and out of the plant along with conversion costs.

“It’s a fairly complex model that we work through,’’ Baerman said.

According to company officials, the plant will be phased out gradually during the last quarter of 2011 and first quarter of 2012.

The cost of the transition is expected to be $6 million to $8 million, while shutting down the plant will produce $20 million to $25 million in annual savings, company officials said.

The company also is consolidating at the corporate level and other manufacturing locations.

That will result in the shedding of another 80 to 100 jobs in other U.S. locations, Baerman said.

According to company officials, Graphic Packaging International is a subsidiary of Graphic Packaging Holding Co. headquartered in Marietta, Ga.

It’s a provider of paperboard packaging for a wide variety of food, beverage and other consumer products.

The firm is one of the largest producers of folding cartons, according to the company website.

The company has a total of 13,000 employees with 55 manufacturing sites in the U.S. and eight other manufacturing locations outside the country, Baerman said.